EU appears to back down on carbon levy on international shipping

Bloc set to accept compromise that would allow companies to trade carbon credits, in blow to climate finance

The long-awaited carbon levy on international shipping that was to supply vital climate finance looks set to be heavily watered down, after the EU appeared to be backing down in global talks, in a blow to vulnerable countries.

The EU is set to accept a compromise that would allow companies to enter into a system of trading carbon credits, instead of paying directly for their emissions, the Guardian has learned.